18th July’2022 (Evenjng)

18th July' 2022 (Evening) -- | Written at 9.00 PM |

It was a good day for the markets today. Boosted by the move in US markets on Friday and taking support from the strong Global cues this morning, #Nifty gave a strong performance. Same goes for #BankNifty.
As mentioned yesterday, #Nifty opened at 16151 and this was the level I mentioned yesterday to watch. Once held, #Nifty was strong and made strong moves to close marginally above its resistance of 16275, that i mentioned yesterday.
#BankNifty also performed exactly as expected and mentioned yesterday in the comments. We may now be looking at 35500 level. However, let us look at the levels before we discuss further.

Now with #Nifty having closed above 16275, we may be eyeing 16325 and then 16500 if it is able to take down 16325. Nifty will need #FII support for this to happen. Some sectors that need to support for this are #NiftyIT and #BankNifty.
As of now I see a resistance at 35500 for #BankNifty. #NiftyFMCG saw some resistance today, #Reliance is another booster to watch. #HDFCBank underperformed today and #ICICIBank is extremely close to its resistance, so i may expect #BankNifty to cool down a bit and see some sectoral rotation to boost IT a bit.
Unless #NiftyIT, #BankNifty and #Reliance do not perform together, a strong sustainable up move is difficult. So lets see, how does this pan out tomorrow.
#BankNifty analysis is partially covered above. I see some resistance at 35500, so lets watch.
#FII bought in cash today and #DII also complimented on it. This led to some short covering and the #FII had to unwound a good number of short positions on Index Futures. Though they created some longs on Stock Futures, I do not see any bullishness in their texture.
The Options OI indicate a trading range of 16000 till 16500 for #Nifty and 35000 to 35500 for #BankNifty. Huge OI has built up at 16000 and 35000 for #Nifty and #BankNifty respectively.
#CrudeOil has inched up again and the #INR is still weak. In the bond markets the yields in 2 years has inched above 10 Y and this probably indicates the rise in yields may not run for long. For cash investors i feel this continues to be a good time and keep buying the dips.